Sept 16 (Reuters) - Vivint Smart Home Inc, a home automation company backed by Blackstone Group, on Monday agreed to merge with a company funded by a unit of Japan’s SoftBank Corp to create a firm with an enterprise value of $5.6 billion.
Vivint makes a range of home security products and hubs that help in controlling other automation gadgets, such as Amazon Echo and Google Home, through a central touchscreen panel.
Mosaic Acquisition Corp, formed by SoftBank unit Fortress Investment Group for making acquisitions, will taken on the Vivint name after the deal closure, latest by the first quarter of 2020.
Blackstone, which bought Vivint in 2012 for more than $2 billion, will retain its investment in the company and invest an additional $100 million.
SoftBank will also invest $125 million in the common stock of Mosaic before the close of the deal.
Blackstone and other existing investors of Vivint are expected to own about 78% of the combined company. (Reporting by Supantha Mukherjee and Vibhuti Sharma in Bengaluru; Editing by Shailesh Kuber)